Subject: File No. S7-12-06
From: lead or follow
Affiliation: Real Estate where you get a Real Deed for your purchase

April 2, 2007

The initial actions of creating a grandfather clause were in my opinion nothing less than illegal, damaging and potentially precedent setting actions that should legally never have happened.

If you buy a car you expect to receive the car..I cannot state this example any more simply.

Failure to deliver should not be excused as this clause has done..it actually rewarded the ones who did not have to cover and damaged the ones who never received. Manipulation comes to mind as well as collusion then the blind eye approach by regulators who allowed the practice to go on so long it snowballed into something that required the grandfather clause. There can be no other explanation for the clause as the regulations are and have been in place but simply put there was no enforcement.

Wrong signals..this clause does nothing less than this. It would give a historical case in the future of things gone bad for what may be many reasons including failure to oversee as is required and potentially set up a reason to reuse this excuse when it happens again.

The response by the few who were used as the excuse to reopen comments ( not enough data to support ) may have been true to a certain extent but you have the data on the failures which is real time information that exsists and obviously effected the market so much that a well..we will just forget about all those failures and start over approach was used and renamed "grandfather clause".

The obvious abuse of the system screams for stronger reulations and stiffer fines penalties not a grandfather clause. The parties who owe the investors for failures must be laughing all the way to the bank and for the leaders of our great country to inact this clause/injustice is a slap in the face to investor confidence as well as second thoughts about entering the exchanges via and IPO and or investing within this system.

My final questions are related to the data since this appears to be the reason to reopen the comment period..

1. How many failure to delivers fell under the "grandfather clause"?
2. Will you provide the company names and amounts per company that failed?
3. Will you provide the same information in question # 2 but in the form of dollar losses?
4. How far back do these failures go that are grandfathered?
5. Why will you not enforce these failures that exsist per our current regulations?
6. Will you provide these answers as data for all investors and the public to see?
7. Will this data be viewed and reviewed for final consideration and response to the initial request by opposing parties since they have requested the same?

regulations are no good unless enforced just like any other crime. If you don't want to do the time don't do the crime. It is very simple and money should not be the catalyst to create a get out of jail free card. There obviously is a problem or this clause would never have been enacted.

You have a duty to all Americans to thwart these types of activities and as such you have been entrusted to do so therefore should you fail to protect us you are in violation of our own laws and should stand trial accordingly.

This clause is illegal and this clause should be eliminated or these failures should go to the US Attorney General for prosecution including the regulators who FAILED THE AMERICAN PUBLIC. Now there is a failure to deliver.